Morning Market Update: Bull Run Continues

- 10 July 2013

International markets extended their rally overnight after the US earnings season kicked off on a positive note.

US markets banked their fourth straight session of gains after aluminium giant, Alcoa, announced quarterly profit and sales that exceeded analyst estimates. The Dow Jones added 75 points (+0.5%) to settle at 15300, the Nasdaq rose 0.7% to 3504 and the S&P500 climbed 0.5% to 1652.

The rebound on Wall Street has seen the S&P500 mostly recover the almost six percent plunge from its record high in late May.

European markets enjoyed even stronger gains, with the UK FTSE advancing 1% to 6513, the German DAX soaring 1.1% to 8058 and the French CAC jumping 0.5% to 3844.

Most commodities strengthened, with oil holding above $103 a barrel as the ongoing political turmoil in Egypt continues to fuel concerns of supply disruptions in the Middle East.

Gold (+0.9%) and silver (+0.5%) also rose as a bigger-than-expected rise in Chinese consumer prices last month boosted the metals’ appeal as an inflation hedge.

In currency markets, the euro slid 0.7% to US$1.2781 amid speculation the European Central Bank will ease monetary policy further, even as the Fed looks to scale back its own easing policies.

Elsewhere, the Aussie appreciated 0.5% to US$0.9176, but could come under renewed selling pressure on the back of an IMF report suggesting China is in for a prolonged economic slowdown.

In local economic news, the Westpac Consumer Sentiment Survey is due for release at 10:30am, AEST.

Australian Stock Report Pty Limited (ABN 91 106 863 978. AFSL 301682) (ASR). Please refer to, and consider the ASR Financial Services Guide prior to acquiring or relying on any ASR products for investment purposes. ASR offers general advice only about financial products (limited to equities and derivatives) and any recommendation provided by ASR is provided without any regard to your individual needs and objectives. ASR is a part of the Amalgamated Australian Investment Group Limited (ABN: 81 140 208 288) group of financial service companies. Financial Services Guide